The different types of trade licenses issued in Dubai include –
- Commercial Licenses – Issued to companies engaged in trading activities.
- Industrial Licenses – Issued to the companies engaged in manufacturing.
- Professional Licenses – Issued to the companies working as service providers, professionals, artisans, and craftsmen.
Forms of Company that can be incorporated in Dubai:
- A company must be in one of the following forms:
- General partnership.
- Limited partnership.
- Limited liability company.
- Public joint stock company.
- Private joint stock company.
- Any company not incorporated under one of the forms above shall be deemed invalid, and persons who contracted in name of such company shall be jointly and severally held liable for any liabilities created by such contract.
- Any company incorporated in the State shall have its nationality, however this does not necessarily mean that the company shall enjoy citizenship rights.
- With the exception of general partnerships and limited partnerships in which joint venture partners must be citizens of the State, each company incorporated in the State must have one national partner or more of a share not less than 51% of the Company’s capital.
- By way of exception from the provisions of item (1) above, Cabinet may, upon a proposal from the Ministry and in coordination with competent authorities, issue a decision determining category of activities that may only be practiced by citizens of the State.
- Any assignment of shares to any partner resulting in violation of the percentage set out in items (1 and 2) of this Article shall be null and void.
Incorporation Procedures Applicable at Competent Authority
- Application for a company incorporation shall be submitted to the competent authority together with its MOA and AOA as well as the projects’ profitability inclusive of the time schedule proposed for execution, and any other documents required by the competent authority.
- Competent authority shall consider the incorporation application, issue initial approval or reject the same, and notify Founders Panel within 10 working days as from the application date, provided the same meets all requirements, or from the date of providing any required documents or information. If initial approval is not issued by competent authority during such period, application shall be deemed rejected.
- If competent authority rejects the incorporation application or the period under item (2) expires without deciding on such application, the Founders Panel may complain before the Director General of the competent authority or his representative within 10 working days, and if such complaint is rejected or not decided on within 15 working days from its submission date, the Founders Panel may challenge the rejection decision issued by competent authority before court of competent jurisdiction within 30 working days as from the date of being notified of such rejection or elapse of such period without any decision issued.
Benefits of Registering a Business in Dubai
- Low Taxation Policies
Corporate and personal taxes on profits earned by businesses are not a concern for business owners. In addition, the low tax rates ensure that you get the most out of your venture without having to spend a lot of money on taxes. Furthermore, the best part is that Dubai’s VAT rates are among the world’s lowest.
- Investment Security
All laws maintained by the DED, RERA, and DLD are fair, indiscriminate, and supportive towards the new-age investors. Furthermore, there aren’t any hidden costs and surcharges. Therefore, you can confidently set up your company in the Emirates. Apart from the benevolent jurisdiction, Dubai has a zero crime rate, and the country is full of peace and tranquility.
- Population Growth
Dubai is a hotspot for new businesses because of the growing population and a rapidly evolving economy. Moreover, Indian and foreign investors continue to find a home for their business in the UAE. Therefore, your business would never run out of clients.
- Hassle-Free Visa Management
You can obtain visas for your shareholders, employees, family members, etc., by filing your application to the concerned department. In addition, a few mandatory visas are granted along with your business license. Furthermore, for more visas, the laws are clearly defined, and you just have to follow the legal process.